preface

90
INVESTMENT INCENTIVES AND TRADE ADVANTAGES
Government assistance is conditional on an independent investment in
the plant, or a recovery plan including additional funding from the
owners.
An external examiner appointed by the committee reviews applicant
plants and their compliance with specific criteria, including:
♦ A recovery plan, its economic feasibility, the financial justification
of the plant’s existence for the long term, and the ability to introduce
recovery measures within a specific period of time.
♦ The lateral implications.
♦ The number of employees and minimum employment period.
♦ The scope of assistance required.
♦ The participation of other entities, including the owners.
♦ The ability to reduce the number of employees according to the
recovery plan.
♦ Funding must not exceed NIS 10 million, and will deprive the plant's
eligibility for further government assistance. However, should the
plant apply for other financial assistance from a government entity,
the plant must repay the loan.
♦ The salaries of managers and employees must not exceed NIS
50,000.
If the applicant plant meets the above criteria, it will be eligible for a
government loan. The amount is determined by the committee, while its
terms are specified by the Accountant General at the Ministry of
Finance, in the event of additional funding from banks. Repayment
terms are equivalent to those stipulated by these banks.
The owners are required to guarantee the loan.
7.6.4. Business Tutorage
The Minister of Industry Trade and Labor focuses on assisting small and
medium sized businesses by appointing “tutors” to cater to the specific
requirements of each business (e.g. general management, financial
management, production management, marketing, information systems,
human resources, etc.).
BDO Israel